Ethereum developers have done it again; so brace yourselves for the next big network upgrade, with many gas-saving changes that will make your wallets jump for joy! And guess what? Danksharding is just around the corner, ready to whisk Ethereum away on another transformative adventure.

But wait, there's more! Vitalik also weighed in on Ethereum’s future with a bit of a longer-term perspective, offering goals he believes will ensure that Ethereum stays winning.

Now, we know some of you might be fretting about those pesky regulatory crackdowns, but fear not! Ethereum is evolving faster than a cheetah on roller skates.

Let's strap on our scuba gear and dive deep into the thrilling world of Ethereum's epic upgrades!

TLDR 📃

• Vitalik offers a fresh perspective on what the future holds for Ethereum.
• Epic upgrades are in the works with the scope of the Dencun upgrade finalised; danksharding and other gas-saving EIPs are included.
• While developers are unphased by regulatory crackdowns, fears of crypto firms leaving the US appear to be manifesting.
• The Ethereum community is resolute; ETH is moving from exchanges into cold storage, and it feels like 2016 all over again.

Disclaimer: Not financial or investment advice. Any capital-related decisions you make are your full responsibility.

Vitalik’s vision for whether Ethereum succeeds or fails 👀

Vitalik is at it again, offering a fresh perspective on Ethereum's future. According to the OG, three absolute game-changers will determine whether Ethereum sinks or swims.

• First, on the list, we've got rollups, where transaction fees are a deal so sweet it'll make your taste buds tingle with delight.
• Next up, we need an environment that nurtures smart contract wallets capable of seamlessly working across a multitude of L2s.
• Last, privacy must take the spotlight, shining as bright as a dazzling diamond necklace. Vitalik wants it to be effortlessly accessible on Ethereum; with no need for complex and tiring workarounds.

And what's the grand solution? It's called a keystore contract; we half expected a grander name; but hey, Ethereum is all about substance, not hype.

But the basic name aside, it's not just your ordinary wallet, oh no! It's a smart contract with superpowers, managing other smart contract wallets across different L2s or even on Ethereum's base layer. Now, that's what we call a spicy concoction!

Existing smart contract wallets will go bonkers over this, and we've got you covered with some lip-smacking recommendations to sink your teeth into if you're hungry for more. Check them out here.

This is not a drill, gas savings are coming! ⛽️

Ethereum developers never stop, and they've just confirmed a host of sweeping changes for Ethereum’s next major upgrade, called Dencun! Again, these developers need to get more creative with the names. Estimated to go live around October of this year, the EIPs (Ethereum Improvement Proposals) included are pretty fascinating: check them out;

• EIP-4844 - A clear boundary in block space ensures transaction fees from rollups and people don’t mess with each other.
• EIP-1153 - A budget-friendly space for data in blocks that'll vanish after executing the block’s transactions. Poof and it's gone!
• EIP-5656 - Making it a walk in the park for smart contracts to clone in-memory data for more resource-demanding tasks.
• EIP-6780 - Modifying the command that eliminates a smart contract to compel the contract to let go of any held ETH (prepping for a future upgrade called Verkle Trees which complicates deletions).
• EIP-4788 - Ah, the harmony of layers! This beauty ensures that the execution layer (where the magic of transactions happens) stays in sync with the happenings of the consensus layer (where transaction agreements are made). It's a dance of perfect coordination!

The star attraction? Absolutely, danksharding, coming alive with EIP-4844. An update promising to save us from the gas crisis is on the horizon, finally! Transient storage is also a big gas saver for rollups and DEXes too. Put them both together, and DEXs on rollups are set to become unimaginably cheap to use! It's a gas-saving extravaganza!

Is innovation being pushed offshore? ✈️

Innovation on Ethereum is booming, though some regulators in the US feel “the land of the free” will end up missing out. Recent antics from the SEC have raised eyebrows, painting a picture of a rather unfriendly terrain for crypto ventures. And you know what? They might have a point.

This week, a brave US senator aimed their sights at Gary Gensler and the SEC, accusing them of "driving the industry offshore" after slapping lawsuits on the big guns – Coinbase and Binance. Just when you thought the drama couldn't get any juicier, a US Congressman jumps into the ring, proposing a bill to shake up the SEC and give Gensler the boot. Talk about throwing punches!

Under Gensler’s orders, the SEC labelled several arbitrary tokens as securities, one of which is Polygon. According to the Binance lawsuit, the SEC considers Polygon a security for reasons including “a protocol upgrade that enabled burning” of MATIC tokens. The stupid part? That upgrade is actually Ethereum’s own EIP-1559 which burns transaction fees instead of sending them to miners or, in today’s case, validators.

The US needs to roll up its sleeves to welcome crypto initiatives. A major investment firm, Galaxy Digital, announced plans to pack up from the US swiftly, while a16z, a leading VC in the crypto space, announced London would be the home of their new office.

Ethereum's development moves full steam ahead, regardless of a country’s stance. The ball is in the government's court – adapt or get left behind.

Ethereum held on exchanges is shrinking fast 💨

Ethereum marches ahead full throttle as hodlers reclaim their Ether from exchanges and tucking them safely away. ETH balance across exchanges is dropping; signalling that Ethereum users aren't scared off by regulators or market fluctuations – they aren't interested in selling.

The last time we saw such a scarcity of ETH on exchanges was way back in July 2016, when a single ETH was a steal at only $12. This is the first time since then that the total ETH count on exchanges has slipped below 16 million.

To put things in perspective, back then, the total ETH was a mere 80 million, a far cry from today's 120 million. Despite the supply increase of 33%, the amount of ETH on exchanges today is impressively slim.

Whale moves 🐋

Here's the interesting part. We've also got our eyes on the whales, and guess what? They're not exactly diving headfirst into buying just yet. In fact, we're witnessing a decline in the number of whales who hold a whopping 1,000 ETH or more.

Now, the big question is: do we agree with these whales? Are they onto something? Could there be more downside ahead for Ethereum? Well, let's put on our chart-watching hats and dive into the data to find out.

Price analysis 📈

Regarding Ether, we’ve reached the peak of bullishness in the long term. Still, that doesn’t change the fact that right now, the market is flooded with uncertainty, and there’s no telling how low we can go. Nevertheless, there is something we can do - identify the scenarios and wait for either one of them to occur.

There are two ways this can go:

1. Ether holds $1,740 as support, aiming for another test of $2,000. Given Binance is running on thin ice, and the market isn’t in its best waters, the chances of this happening are quite low but still not impossible.
2. Ether loses $1,740 as support and heads to $1,420. This is the more “realistic” scenario which will allow us to accumulate at lower prices, and honestly, we say let it come. 😉

Both scenarios require constant monitoring, so make sure you keep an eye out on our TA here.

Cryptonary’s take 🧠

Time stops for no man, and neither do blockchains. Progress towards making Ethereum better is relentless, and the upgrades on the horizon are some of the biggest we’ve ever seen. The network is always getting better, and hodlers recognize this, holding on to as much of their ETH as they possibly can. We don’t blame them - we are them.

As always, thanks for reading. 🙏